Anaheim, CA-based specialty retailer
Pacific Sunwear of California Inc.
) reported its third-quarter fiscal 2013 results wherein it
incurred a loss of 5 cents a share, wider than a loss of 2 cents
in the comparable prior-year period, on an adjusted basis.
The quarterly loss came in line with the Zacks Consensus
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Earnings were majorly impacted by the 53rd week calendar shift,
in the absence of which the company would have reported
break-even results compared to last year.
On a reported basis, the company posted earnings of 23 cents a
share from continuing operations, significantly up from 5 cents
delivered in the year-ago quarter.
Net sales dropped 4.1% to $206.6 million, almost in line with the
Zacks Consensus Estimate of $206 million. Sales were also
primarily impacted by the calendar shift.
However, same-store sales for the quarter inched up 1%,
representing the 7th consecutive quarter of positive same store
sales. For November, it rose 6% on the back of robust Black
Friday sales, strong emerging brands and an exclusive range of
Adjusted gross profit slipped 14.2% to $51.9 million with the
gross margin contracting 300 basis points to 25.1%.
Operating loss was $2.2 million compared to an operating profit
of $1.1 million in the prior-year quarter.
Adjusted selling, general and administrative (SG&A) expenses
in the reported quarter were approximately $53.9 million, down
9.1%, year on year.
Pacific Sunwear ended the quarter with cash and cash equivalents
of $19.9 million, long-term debt of $80.7 million, and
shareholders' equity of $40.3 million.
During the third quarter, this sports and fashion retailer opened
4 new stores and closed 13, taking the total store count to 635
(comprising 517 PacSun Core stores and 118 PacSun Outlet stores)
, spanning about 2.5 million square foot.
In the fourth quarter of fiscal 2013, the company expects loss
between 12-17 cents, taking into account the effects of calendar
shift. Management projects revenue between $216 million and
Moreover, management forecasts same-store sales to range between
1-5%, gross margin to contract further and lie somewhere between
21-24% and SG&A to come in the range of $61-63 million, in
the coming quarter.
Other Stocks to Consider
Pacific Sunwear, one of the leading seller of clothing, footwear
and accessories, currently holds a Zacks Rank #4 (Sell). Other
better-ranked stocks in the related industry include
Fossil Group, Inc.
Deckers Outdoor Corp.
ANTA Sports Products Ltd
), all carrying a Zacks Rank #2 (Buy).